The Ministry of Energy and Mineral Resources (MEMR) of Indonesia has passed a new regulation for the solar rooftop photovoltaic (PV) industry in the country. The MEMR rules were initiated in 2018 and the new amendments, MEMR 26/2021, aim to provide a better net-metering tariff, a longer reset period, expansion to areas that are not serviced by PT Perusahaan Listrik Negara (PLN), and a more efficient application process.
The new regulations provide greater incentives for solar PV development. These include new net metering rules that have increased the net metering factor from 0.65 to 100. This will allow the owners of PV systems to be given credits for the surplus power they inject into the grid at the same tariff paid by them for purchasing electricity from the network. Additionally, rather than the earlier three-month period, these credits can be accumulated for up to a period of six months. These incentives are expected to spur growth in Indonesia’s solar PV sector and help the nation achieve its carbon emission targets.
